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13th of February, 2014

In recent years we have witnessed how the State reduced daily participation in the cultural life of the country. Discuss this continues to be a no-brainer for all known , more interesting stand at this point to understand the following lines of funding for the proposed ICC in this forum .

In parallel with the withdrawal of the state we can see a substantial input of companies and foundations as promoting various cultural manifestations of this country. They realize that the cultural and creative industries are profitable and generate not only jobs but also a significant economic impact on GDP .

The idea of putting the private sector to shoehorn in the boardrooms of large institutions or patron of more modest projects is something that we saw in the 80s in both the U.S. Reagan and Thatcher Britain , whom we barely survived . What may be seen as a distinguishing feature here is that the state does not posé a law of patronage and companies do not see their donations and participation rewarded with tax benefits as in the previous cases.

In summary, the State speech can be summarized in a " arreglatelas Gun " in which the ICC must be profitable for businesses wishing to participate in its benefits .

 

The TEATRO REAL CASE

A significant example of this intervention was exposed by the directive of the Royal Theatre. It was explained very fully the economic situation in this institution today. In the special intervention emphasized the need to professionalize the model and generate strong foundation to overcome other crises.

In this case study we chose shared between public subsidies to 30 % , 30% private sponsorships , ticket sales and 30% Theatre Royal brand, which includes services, rentals and sales of products , 10% model. This is complemented with decreased spending and human resources of around 50%.

The trigger model change is the change in public institutions . 2009 STATE government subsidies , Madrid City Hall and down from 60% to 30 % from € 27.7 million to € 12.8 million in 2014. It has been shown how investment subsidy of € 1 at the Theatre Royal generated a return of 3.8 € to GDP hairdresser , taxi , dinner ...

Here witnessed corporations and foundations were interested in participating on the boards of big institutions where these are managed from a professional and efficient optical economically left. However we can not ignore the dangers this poses to the entire sector in promoting a paradigm shift in that it outweighs the private sector. There is an infinite supply of these resources and sponsorship can be depleted or not reach the more modest initiatives .

Lines of action set out in the sessions.

1. audiovisual AGR

AUDIOVISUAL SGR . It is named because originally centered in the audiovisual field , but now it has been extended to other areas of Cultural and Creative Industries . It is specialized in the cultural sector financial institution whose function is to endorse and act as an intermediary to banks . Establishing a commission of around 1 to 2% and expenditure of 0.5% of the study cost of the guarantee . Lately this is covered by the state, so the cost is zero . Presents a mutual character and those interested in participating in this project have to be partners.

Among the facilities offered include improving the ability to negotiate with the bank because they are wholesalers of money , so they get cheaper interest. This program extends the capability of enterprise risk and claim they have no fine print. They also facilitate the formalities as advice .

As for his responsibility as guarantors would not have to respond with their own property , the bank does not have to follow the company so that costs are reduced delinquency . The risks are guaranteed 20% and there have been around 900 projects.

Two . ENISA.ES

This body is a public company that is dedicated to the financing of SMEs and Entrepreneurs , ie companies that are innovative to demonstrate commitment and talent. They offer an equity loan should be treated as a figure of additional funding . In this case the public body does not enter the capital or management process of the company, just part of the benefits . This is set in two sections , one fixed and one variable whose maximum does not exceed 8 % and is paid based on profits. In the case of not only the benefits obtained fixed tranche would be paid . This body acts as a subordinate , it is quasi capital. In a situation of bankruptcy responds or remains uncollected . Give a lot of security to traditional banking . Loans are between 25,000 and 1,500,000 € ( top) and the total amount of the program is 118.3 M € . What is sought ultimately with this is business creation , growth and ultimately consolidation. It is aimed at companies that were created more than 24 months before the application. The viability of the applicant is evaluated with a business plan own body in which not only the financial solvency but also the ability of the organization is evaluated. CCI currently have a department in this organism. The level is 30% failed and all the business project is financed.

Three . Creative Europe Programme

This program is included in the Europe 2020 strategy which aims to create sustainable employment in the field of ICC within the EU, setting up a European quality label in the next decade. It comes and noting the importance the EU gives the ability of these industries in creating jobs and wealth through a series of loans and programs seeking to generate public sector sustainability .

Citizens are the backbone of this program with the importance given to the time of generating public and reach new audiences . Emphasis on cultural and linguistic diversity of the EU in making programming and force the professionalization of cultural managers are ago . Finally seeks to operate transnationally between 28 Member States through the promotion of networking between organizations within the same sector. A platform that serves to attract emerging talent and consolidate a European program with new values.

Sub culture.

As for the European forms have been simplified and delivered via the Internet . It requires companies competing for the program have at least two years of existence. Coordination with other European institutions are also minimum - order three - presenting a financial leader with a capacity ≥ 60,000 .

Traditional European cooperation projects may be smaller or larger depending on how many partners have the leader and the duration of the program. The financing varies. 40 % and 50 % smaller scale larger scale. Finally much emphasis on translation projects done.

To know more about:

Ministerio de Educación Cultura y Deporte
Oficinas de Europa Creativa.
Plaza del Rey 1. Madrid 917017115
pcc.cultura @ mecd.es

 

Manuel Martínez
*Plastic Crowds co-editor

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